The US dollar today weakened against other major currencies given the lower bond yields witnessed in the markets and an empty economic docket. The greenback lost momentum in the early North American session due to the lack of major financial releases, or comments from US President Donald Trump.
The US dollar seemed to lose momentum against its main peers given the gains it had made during previous sessions. The US dollar index, which tracks the greenback’s performance, was trading at a low of 100.14, which is much lower than yesterday’s close at 100.40.
The greenback’s poor performance can be attributed to the lower US bond yields given that the 10-year benchmark rate dropped to a low of 2.33%. There was also a lack of financial and political news from the US given that the greenback’s rally was largely motivated by positive economic data, and Trump announcements.
The greenback was also negatively affected by positive market sentient towards higher-yielding riskier currencies such as the Australian dollar, which increased the selling pressure around the US dollar.
The currency is likely to be affected by the wholesale inventories data and the jobless claims data both scheduled for release tomorrow. The greenback might also be affected by tomorrow’s speeches from the Chicago and St.Louis Feds.
The EUR/USD was trading at 1.0702 as at 17:35 GMT having tested lows of 1.0639 before the start of the North American session, which saw the euro gain significantly against the US dollar. The USD/JPY was trading at 111.68 having tested a daily high of 112.53.
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